The growth of volatility of the exchange rate on currency market has the situational nature following the foreign policy situation, according to NBU message in Facebook.

“Within last few days the growth of volatility of the exchange rate on currency market is observed. According to the National Bank, these fluctuations have the situational nature (following the foreign policy situation) and are not connected with fundamental factors”, - the message says.

According to the message, the situation on internal and external markets remains favorable due to the rapid drop of inflation rates, the high yield of cereals and the positive situation on global steel and iron ore markets.

In addition, the oil price reduction and raising energy efficiency of the economy lead to import reduction.

NBU reminded that the regulator follows the flexible exchange-rate regime, as per which it does not counteract exchange rate movement, conditioned by fundamental market factors.

“However NBU mitigates excessive exchange fluctuations as a result of situational factors. For mitigating exchange fluctuations toward currency depreciation as well as strengthening NBU conducts currency interventions”, the press office reports.

“Thus, from this March to July the excess of currency supply over its demand was observed on the interbank. Since the beginning of the year during interventions and currency auctions the currency purchase by NBU made up almost USD 1.5 billion, and gold and currency reserves increased to USD 14 bln”, the message says.  

“Please note that the National Bank closely monitors the situation on the market and, if necessary, has all possibilities not to allow excessive fluctuations of the exchange rate”, NBU noted.

As it was reported, the hryvnia against dollar rate on the interbank currency market decreased by 13 copecks for a day.

Source: Economic Truth.